CHAPTER 11: SAVINGS/INVESTMENTS- Short Term - Students should consider how much money they will set aside per month for savings. Students should realize that they cannot possibly allow for every single expense before they happen. Unexpected expenses could come in the form of major car repairs, medical care , home improvements, furniture upgrades or sudden travel. In order to prepare for these future costs (which are a certainty) one should put aside money in a savings account that can be easily accessed. Many companies will automatically deposit your check in your bank and you can then direct the bank to make automatic deposits to your savings account. A good amount to have put aside is at least $1500; and once that amount is achieved, increase savings to expenses needed for one-month and then three-months. Plan accordingly for these unexpected expenses so that borrowing money to cover these costs will not be a necessity. (SOL.GOVT.15.f, 16.c, 17)
Long-Term – Students should consider their economic futures. Retirement planning is something that should start early! Some businesses may provide retirement accounts but not all do. If your chosen job does have a retirement account, how much money are you going to have taken out of your pay check each month? If your chosen job does not have a retirement account, you must come up with some other option. Will you be investing in the stock market? Explain your choice.
Credit – Part of savings is also saving for big-ticket items. When making car payments or house purchases good credit is essential. Each year you may obtain a free credit report at www.annualcreditreport.com. You will also need to include 3 things you are going to do to build and/or maintain good credit. Additionally, what will be your plan with respect to credit cards usage? It is highly recommended that you pay off any credit card charges completely each month to avoid the extremely high interest rates (21%!!) that will be charged on carryover balances.
Chapter 11 Requirements Summary Page to include:
Discuss your short term savings strategy: Identify the current interest rate on personal savings accounts and/or CDs (certificates of deposit) at your bank. How much will you take out of your paycheck? Does your company have automatic deposit?
Discuss your long term retirement savings strategy: does your employer have a company pension plan? Do they match your contribution? If not, to what long term investment, such as an IRA (Individual Retirement Account) will you contribute to create your own retirement account? Will you invest in a stock market portfolio?
Discuss how you will handle credit cards. What will you do to establish and maintain a good credit rating?
Additional Required Information:
Include brochures or website printouts, with appropriate areas highlighted, which shows your savings account features, CDs, company pension plans, IRAs, stocks, credit cards, etc.
Short Term - Students should consider how much money they will set aside per month for savings. Students should realize that they cannot possibly allow for every single expense before they happen. Unexpected expenses could come in the form of major car repairs, medical care , home improvements, furniture upgrades or sudden travel. In order to prepare for these future costs (which are a certainty) one should put aside money in a savings account that can be easily accessed. Many companies will automatically deposit your check in your bank and you can then direct the bank to make automatic deposits to your savings account. A good amount to have put aside is at least $1500; and once that amount is achieved, increase savings to expenses needed for one-month and then three-months. Plan accordingly for these unexpected expenses so that borrowing money to cover these costs will not be a necessity. (SOL.GOVT.15.f, 16.c, 17)
Long-Term – Students should consider their economic futures. Retirement planning is something that should start early! Some businesses may provide retirement accounts but not all do. If your chosen job does have a retirement account, how much money are you going to have taken out of your pay check each month? If your chosen job does not have a retirement account, you must come up with some other option. Will you be investing in the stock market? Explain your choice.
Credit – Part of savings is also saving for big-ticket items. When making car payments or house purchases good credit is essential. Each year you may obtain a free credit report at www.annualcreditreport.com. You will also need to include 3 things you are going to do to build and/or maintain good credit. Additionally, what will be your plan with respect to credit cards usage? It is highly recommended that you pay off any credit card charges completely each month to avoid the extremely high interest rates (21%!!) that will be charged on carryover balances.
Chapter 11 Requirements
Summary Page to include:
Additional Required Information: